Gold hovered near record levels on Friday and was on track for a weekly gain after the U.S. Federal Reserve's recent oversized interest rate reduction and on signs that further cuts were on the horizon.

Gold pulled back from a record high after Federal Reserve Chairman Jerome Powell signaled policymakers aren’t in a rush to aggressively lower interest rates following Wednesday’s half percentage point cut by the US central bank.

Gold prices climbed to a fresh record high on Thursday, with inflation data this week providing support even as some analysts believe bets for a Federal Reserve interest-rate cut next week have been fully priced into the precious metal.